-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J9gs7+9xK0Z0u/pMRmX3b6i3YUd9mFPy4DeFeF2xUtnaXW04YvPkRacsHw7UHxSz 12a4lZ0S4vDz7Uc+INMwNg== 0000950117-04-003194.txt : 20040902 0000950117-04-003194.hdr.sgml : 20040902 20040902091504 ACCESSION NUMBER: 0000950117-04-003194 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040902 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20040902 DATE AS OF CHANGE: 20040902 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REX STORES CORP CENTRAL INDEX KEY: 0000744187 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731] IRS NUMBER: 311095548 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09097 FILM NUMBER: 041012390 BUSINESS ADDRESS: STREET 1: 2875 NEEDMORE RD CITY: DAYTON STATE: OH ZIP: 45414 BUSINESS PHONE: 5132763931 FORMER COMPANY: FORMER CONFORMED NAME: AUDIO VIDEO AFFILIATES INC DATE OF NAME CHANGE: 19920703 8-K 1 a38313.txt REX STORES CORPORATION UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): September 2, 2004 REX STORES CORPORATION (Exact name of registrant as specified in its charter) Delaware 0-13283 31-1095548 (State or other jurisdiction (Commission File No.) (IRS Employer Identification No.) of incorporation)
2875 Needmore Road, Dayton, Ohio 45414 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (937) 276-3931 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition On September 2, 2004, REX Stores Corporation issued a press release announcing financial results and comparable store sales for the three- and six-month periods ended July 31, 2004. The press release is furnished as Exhibit 99 to this report. Item 9.01. Financial Statements and Exhibits (c) Exhibits. The following exhibits are furnished with this report: 99 Press Release dated September 2, 2004 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. REX STORES CORPORATION Date: September 2, 2004 By: /s/ DOUGLAS L. BRUGGEMAN -------------------------------- Name: Douglas L. Bruggeman Title: Vice President - Finance, Chief Financial Officer and Treasurer EX-99 2 ex99.txt EXHIBIT 99 [REX STORES LOGO] News Announcement For Immediate Release For further information contact: Douglas Bruggeman Stewart A. Lewack, Joseph N. Jaffoni Chief Financial Officer Jaffoni & Collins Incorporated 937/276-3931 212/835-8500 or rsc@jcir.com REX STORES' SECOND QUARTER DILUTED EARNINGS PER SHARE INCREASE 4% TO $0.26 Dayton, Ohio (September 2, 2004) -- REX Stores Corporation (NYSE:RSC), a specialty retailer of consumer electronic products and appliances, today announced financial results and comparable store sales for the three- and six-month periods ended July 31, 2004. Net income in the three months ended July 31, 2004 rose 4% to $3.3 million, or $0.26 per diluted share, from net income of $3.2 million, or $0.25 per diluted share, in the three months ended July 31, 2003. Net income for the 2004 period reflects an income tax benefit of $1.4 million due to the June 2004 successful completion of an Internal Revenue Service examination related to the Company's Section 29 income tax credits for certain years. Net income for the 2004 period also reflects a $0.6 million pre-tax loss on the early termination of debt. Per share results are based on 12,854,000 and 12,626,000 diluted weighted average shares outstanding for the three-month periods ending July 31, 2004 and July 31, 2003, respectively. Net sales in the three months ended July 31, 2004 fell 2% to $88.4 million from $90.2 million in the three months ended July 31, 2003. Comparable store sales during the period were flat compared to the same year-ago period. Excluding air conditioners, which can represent a significant portion of the Company's fiscal second quarter sales, comparable store sales would have risen 4%. The Company reports sales performance quarterly and considers a store to be comparable after it has been open six full fiscal quarters. Comparable store sales figures do not include sales of extended service contracts. -more- REX Stores Reports Second Quarter Results, 9/2/04 page 2 During the three-month period ended July 31, 2004, REX purchased approximately 420,400 shares of its common stock in open market transactions. Subsequent to the end of the quarter, the Company purchased approximately 103,000 additional shares. The Company has approximately 597,000 authorized shares remaining available to purchase under its previously announced stock buy-back authorization. Net income in the six-month period ended July 31, 2004 rose 17% to $7.4 million, or $0.57 per diluted share, compared to net income of $6.3 million, or $0.50 per diluted share, in the six-month period ended July 31, 2003. Per share results are based on 12,925,000 and 12,567,000 diluted weighted average shares outstanding for the six-month periods ending July 31, 2004 and July 31, 2003. Net sales in the 2004 six-month period were $175.6 million compared $184.2 million in the six months ended July 31, 2003, while comparable store sales fell 4%. The Company will host a conference call and webcast today at 11:00 a.m. EDT, which are open to the general public. The conference call dial-in number is 646-862-1110; please call ten minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the call live via the Investor Relations page of the Company's website, www.rextv.com, or at www.fulldisclosure.com; please allow 15 minutes to register, download and install any necessary software. Following its completion, a telephonic replay of the call can be accessed through 1:00 p.m. EDT on September 9, 2004 by dialing 800/633-8625 or 402/977-9141 (international callers). The access code for the audio replay is 21206758. Alternatively, a replay will be available on the Internet for 30 days at www.rextv.com or www.fulldisclosure.com. REX Stores Corporation is a leading specialty retailer of consumer electronic products and appliances. As of July 31, 2004, the Company operated 239 stores in 37 states under the trade name "REX." This news announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as "may," "expect," "believe," "estimate," "anticipate" or "continue" or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include among other things: the highly competitive nature of the consumer electronics retailing industry, changes in the national or regional economies, weather, the effects of terrorism or acts of war on consumer spending patterns, the availability of certain products, technological changes, new regulatory restrictions or tax law changes relating to the Company's synthetic fuel investments, the fluctuating amount of quarterly payments received by the Company with respect to sales of its partnership interest in a synthetic fuel investment, and the uncertain amount of synthetic fuel production and tax credits received from time to time from the Company's synthetic fuel investments. -tables follow- REX Stores Reports Second Quarter Results, 9/2/04 page 3 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts)
Three Months Ended Six Months Ended July 31, July 31, -------- -------- --------- --------- 2004 2003 2004 2003 -------- -------- --------- --------- NET SALES $ 88,429 $ 90,150 $ 175,605 $ 184,212 COSTS AND EXPENSES: Cost of merchandise sold 63,350 62,135 125,028 128,722 Selling, general and administrative expenses 24,410 25,561 48,704 51,088 -------- -------- --------- --------- Total costs and expenses 87,760 87,696 173,732 179,810 -------- -------- --------- --------- Income from continuing operations before interest, other items, income taxes and discontinued operations 669 2,454 1,873 4,402 INVESTMENT INCOME 58 23 145 40 INTEREST EXPENSE (796) (1,292) (1,750) (2,488) LOSS ON EARLY TERMINATION OF DEBT (592) - (614) - GAIN ON SALE OF REAL ESTATE - - - 386 INCOME FROM SYNFUEL INVESTMENTS 3,343 3,119 8,579 6,183 -------- -------- --------- --------- Income from continuing operations before provision for income taxes and discontinued operations 2,682 4,304 8,233 8,523 PROVISION (BENEFIT) FOR INCOME TAXES (800) 1,088 603 2,147 -------- -------- --------- --------- Income from continuing operations 3,482 3,216 7,630 6,376 Loss from discontinued operations, net of tax (198) (49) (261) (71) -------- -------- --------- --------- Net Income $ 3,284 $ 3,167 $ 7,369 $ 6,305 ======== ======== ========= ========= WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 11,225 10,705 11,190 10,821 ======== ======== ========= ========= Basic income per share from continuing operations 0.31 0.30 0.68 0.59 Basic loss per share from discontinued operations (0.02) (0.00) (0.02) (0.01) -------- -------- --------- --------- BASIC NET INCOME PER SHARE $ 0.29 $ 0.30 $ 0.66 $ 0.58 ======== ======== ========= ========= WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 12,854 12,626 12,925 12,567 ======== ======== ========= ========= Diluted income per share from continuing operations 0.27 0.25 0.59 0.51 Diluted loss per share from discontinued operations (0.01) (0.00) (0.02) (0.01) -------- -------- --------- --------- DILUTED NET INCOME PER SHARE $ 0.26 $ 0.25 $ 0.57 $ 0.50 ======== ======== ========= =========
(more) REX Stores Reports Second Quarter Results, 9/2/04 page 4 REX STORES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (in thousands, except per share amounts)
July 31 January 31 July 31 2004 2004 2003 ----------- ---------- --------- (Unaudited) (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 3,360 $ 29,026 $ 2,116 Accounts receivable, net 1,771 2,560 1,844 Synthetic fuel receivable 2,288 3,098 400 Merchandise inventory 156,167 116,755 169,101 Prepaid expenses and other 1,670 1,481 3,068 Future income tax benefits 8,703 8,703 8,860 --------- --------- --------- Total current assets 173,959 161,623 185,389 PROPERTY AND EQUIPMENT, NET 132,953 131,409 133,439 OTHER ASSETS 639 3,477 2,434 FUTURE INCOME TAX BENEFITS 16,082 14,645 7,560 SYNTHETIC FUEL ESCROW - - 10,042 RESTRICTED INVESTMENTS 2,262 2,257 2,250 --------- --------- --------- Total assets $ 325,895 $ 313,411 $ 341,114 ========= ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable $ 11,560 $ - $ 30,775 Current portion of long-term debt 2,899 5,258 6,478 Current portion of deferred income and deferred gain on sale and leaseback 10,348 10,544 11,301 Accounts payable, trade 57,522 32,745 45,407 Accrued income taxes 575 806 51 Accrued payroll 4,406 6,602 4,495 Other current liabilities 7,576 7,214 8,738 --------- --------- --------- Total current liabilities 94,886 63,169 107,245 --------- --------- --------- LONG-TERM LIABILITIES: Long-term mortgage debt 32,406 53,548 60,504 Deferred income 11,809 12,762 13,015 Deferred gain on sale and leaseback - - 49 --------- --------- --------- Total long-term liabilities 44,215 66,310 73,568 --------- --------- --------- SHAREHOLDERS' EQUITY: Common stock 286 283 278 Paid-in capital 127,734 126,124 121,786 Retained earnings 192,449 185,080 163,945 Treasury stock (133,675) (127,555) (125,708) --------- --------- --------- Total shareholders' equity 186,794 183,932 160,301 --------- --------- --------- Total liabilities and shareholders' equity $ 325,895 $ 313,411 $ 341,114 ========= ========= =========
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